EURUSD analysis 17.04.2020

The euro currency fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the second session from the lowest since the seventh of April, while we are still in the process of weekly gains against the US dollar on the cusp of developments and economic data expected on Friday by the eurozone and the US economy The largest economy in the world.

At 05:41 am GMT, the euro against the US dollar rose 0.25% to 1.0867 levels compared to the opening levels at 1.0840 after the pair achieved its highest level during the trading session at 1.0879, while achieving the lowest at 1.0836.

Markets by Italy, the third-largest economy in the euro area, are awaiting the release of the trade balance reading, which may explain the widening of the surplus to 3.18 billion euros against 0.54 billion euros in January, before the disclosure of inflation data for the eurozone economies as a whole with the release of the annual final reading of the price index Consumers, which may reflect a steady growth of 0.7%, unchanged from the initial reading for the past month and 1.2% in February.

The core annual CPI reading for the eurozone as a whole may also show stability in growth of 1.0%, also little changed from the initial reading and compared to 1.2% in the previous annual reading of February, otherwise, we followed yesterday the European Central Bank Governor Christine Lagarde expressed The fact that the European Central is committed to doing whatever is necessary for its commitments to confront the crisis of the spread of the Coronavirus.

On the other hand, investors are currently waiting for the release of the leading indicators by the US economy, which may reflect a decline of 7.1% compared to a rise of 0.1% in February. Otherwise, we followed yesterday. US President Donald Trump expressed his belief that the outbreak of the Coronavirus in his country had reached its climax, and that the days will witness a noticeable decline in cases of coronavirus infections and deaths resulting from it, while addressing the importance of gradually restoring the economy.

Trump also announced, with his announcement of "guidelines" for restarting the economy, that the cost of sustaining the economy has been closed for an extended length of time, and federal guidelines issued by the US administration yesterday recommend documenting the "downward path" in cases of coronavirus and influenza-like illnesses before commuting orders in The house is for citizens of the United States, after which the sunrise in the process of re-opening the country can be done in three stages.

This comes hours after US President Trump stopped his country’s funding of the World Health Organization with harsh criticism of the organization, and it is reported that the organization stated last Monday that the world had not reached the peak of the Coronavirus outbreak, warning of easing restrictions on citizen movements and the possibility of a new wave of coronavirus outbreaks This came after some countries announced plans to reduce the precautionary measures that Germany joined last Wednesday.

According to the latest figures issued by the World Health Organization, the number of cases infected with coronavirus globally has risen to nearly two million, and 131,037 people have died in 213 countries, and we would like to point out because the International Monetary Fund warned last Tuesday that the world economy may witness during this year a contraction by three Percent, which may reflect the worst performance of the global economy since the Great Depression of the 1930s.

Technical analysis

The euro against the dollar made an attempt to break the 1.0840 level yesterday, but it maintained its cohesion above it, to start the day with an upward trend away from this level. Of gains over the upcoming sessions.

Therefore, a bullish bias will be favored for today, supported by the stochastic positivity, noting that our first target is at 1.0966, while a break of 1.0840 represents a negative factor that will stop the suggested rise and press the price to incur losses starting at 1.0700 then 1.0640.

The expected trading range for today is between 1.0800 support and 1.1000 resistance.

Expected trend for today: bullish.